Polymath
2 May 2018
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2 min read
Global adoption of token fundraising structures has led to an explosion of new capital formation.
In 2017, ICOs raised over $4 billion of early-stage capital and massively disrupted traditional finance. But while token fundraising is a booming trend, the global securities market has yet to participate in a meaningful way.
Stocks, bonds, venture capital, private equity and virtually every category of traditional finance still function on platforms designed in the analog era. But, the trillion dollar securities market could migrate to the blockchain…
Analysts predict that a new decentralized infrastructure for the modern financial world is on the horizon. In this new economy, financial securities will be replaced by tokens that live on the blockchain. These tokens will usher in a new era of crypto fundraising, 24/7 Trading, and give the world’s 2 billion unbanked adults access to capital markets for the first time ever.
However, this vision may be some way off as there still remains a giant chasm between Wall Street and the blockchain. More importantly, there is no decentralized platform in existence that can successfully bridge these worlds.
Today, businesses looking to join the crypto-revolution by launching their own security token have nowhere to go. The opportunity for a platform to emerge and serve the thousands of firms waiting to transform equity capital into blockchain-powered tokens is immense.
We anticipated this next mega-trend in crypto.
That is why Polymath is building the world’s first decentralized protocol that will act as the interface between financial securities and the blockchain. This will empower corporations to launch their own securities tokens, massively disrupting the legacy securities industry.
Founded in 2017, Polymath gives issuers of financial products access to the blockchain, smart contracts, and token creation technology. Our platform lowers the barriers to entry for businesses looking to launch tokenized securities and investors looking to gain exposure to regulated, asset-backed tokens.
Polymath’s stated mission is to guide venture capital firms, investment funds, and public companies through the complex technological and legal processes of a successful token launch.
We have created a security token protocol which embeds regulatory requirements into the tokens themselves, which are then only available to verified and authorized participants.
The Polymath protocol verifies each cryptocurrency wallet address to ensure only authorized investors that meet the criteria for each particular security offering are able to transact with that security token.
With this baked-in restriction, decentralized and anonymously run exchanges will be able to facilitate trading with these tokens, because the tokens can only go to authorized participants. Additionally, these restrictions provide issuers assurance that their tokens will only be held by authorized participants.
Our security token protocol aims to emerge as the standard for blockchain-based securities tokens.
In Polymath’s world, equity, LP shares, and share units will become programmable tokens that are more accessible, liquid and secure than traditional forms of asset ownership.
It’s a future where token holders replace shareholders in the global economy and every business in the world has immediate access to trillions of dollars worth of crypto capital.
Polymath’s native utility token, POLY, could usher in a new era of security token offerings or “STOs”, which will dwarf the funding for ICOs, as trillions of dollars worth of financial products are issued as tokens.
By powering the next generation of securities tokens, Polymath is aiming to be the catalyst that launches the securities token revolution.
Let the stampede begin.
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